Notes To The Financial Statements (Cont’d) 31 March 2026 SECTION 05 : FINANCIAL STATEMENTS & OTHERS 168 Registration No: 90 199201005296 (236800 - T) 28. FINANCIAL INSTRUMENTS (a) Capital management The primary objective of the capital management of the Group and the Company is to ensure that the entities of the Group and the Company would be able to continue as going concerns while maximising the returns to shareholders through the optimisation of the debt and equity balance. The overall strategy of the Group and the Company remains unchanged from that in the financial year ended 31 March 2025. The Group and the Company manage its capital structure and makes adjustments to it, in light of changes in the economic conditions. In order to maintain or adjust the capital structure, the Group and the Company may from time to time adjust the dividend payout to shareholders, return capital to shareholders or issue new shares. No changes were made in the objectives, policies or processes during the financial years ended 31 March 2025 and 31 March 2026. The Group and the Company monitor capital using a gearing ratio, which is total external borrowings divided by total equity attributable to owners of the parent. The policy of the Group and the Company is to keep the gearing ratio within manageable levels. At the end of the reporting period, the Group’s and the Company’s gearing ratio is 0.60 times (2025: 0.85 times) and 0.37 times (2025: 0.42 times) respectively. Pursuant to the requirements of Practice Note No. 17/2005 of the Bursa Malaysia Securities, the Group is required to maintain a consolidated shareholders’ equity of more than 25% of the issued and paid-up capital (excluding treasury shares) and such shareholders’ equity is not less than RM40.0 million. The Group has complied with this requirement for the financial year ended 31 March 2026. (b) Determination of fair value The methods and assumptions used to estimate fair values of financial assets and financial liabilities are as follows: (i) Financial instruments that are not carried at fair value and whose carrying amounts are a reasonable approximation of fair values. The carrying amounts of financial assets and liabilities, such as trade and other receivables, trade and other payables are reasonable approximation of fair values due to their short-term nature. The fair values of non-current other payable (excluding land entitlement payment and provision for deferred consideration), term loans, other borrowings and liability component of RCPS are determined by the present values of future cash flows estimated and discounted using the current interest rates for similar instruments at the end of the reporting period. There is no material difference between the fair values and carrying amounts of these instruments due to the insignificant impact of discounting or that they are floating rate instruments that are re-priced to market interest rates on or near the end of the reporting period.
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